Rachel Reeves has told cabinet ministers to prioritise British firms for government contracts in shipbuilding, steel, energy and AI, amid concerns too much public spending is going overseas.

In a letter to colleagues, issued just days after the Government green lit the purchase of refined Russian oil and gas, the chancellor urged departments to “buy British” wherever possible, saying ministers must do more to support domestic industry and create “good, skilled jobs and apprenticeships here in Britain”.

Reeves wrote: “Every secretary of state can and must lead this agenda within their departments if we are to deliver the change the public expect.”

The move comes after criticism of contracts being awarded to overseas firms, including naval support vessel work handed to Dutch shipbuilder Damen and a refit contract for the Sir David Attenborough vessel awarded to Danish shipyard Orskov.

A UK Government spokesman said: “For the first time, procurement of shipbuilding, along with steel, AI and energy infrastructure, will be recognised as critical for national security.”

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